MP Cabinet Okays Financial Powers Manual, Gives More Teeth To Administrative Departments 

Bhopal (Madhya Pradesh): Giving more financial powers to the administrative departments and heads of departments, the Cabinet on Tuesday approved the Financial Powers Manual 2025 (Part 1). The newly approved financial powers will come into effect from July 1. 

The finance department has been authorised to correct clerical errors and make future amendments, as per the need. The new manual comes as an update on the Finance Powers Manual 2012 (Part 1), which came out 13 years ago. 

A significant rise in the cost of various items over past 13 years, emergence of new categories of expenditures related to office operations, removal of obsolete items, and inclusion of new, relevant categories, discontinuation of outdated office equipment, materials, greater decentralisation of powers, and enabling timely utilisation of budget provisions to expedite implementation of schemes are some of the reasons the manual had to be revised.

The decision envisages inclusion of provision such as empowering the administrative departments to designate budget controlling officers, authorising departments to engage consultancy firms and agencies for project work, granting departments the power to engage interns etc.

Departments can now independently approve demolition of departmental buildings and they can also sanction 80% of medical advance (to employees) without seeking the approval or consultation from health and medical department, write off excess pension orgrant pensions. 

CM updates Cabinet

Before the Cabinet meeting, CM Mohan Yadav told his ministers that to mark the 300th Jayanti of Devi Ahilyabai Holkar, a state-level campaign is going on under which, different activities are being held from May 26 and will continue till May 31.

Next Cabinet meeting in Pachmarhi 

In memory of Pachmarhi’s King Bhabhut Singh, the next Cabinet meeting will be held in Pachmarhi on June 3. King Bhabhut Singh had given a tough time to Britishers by waging a guerilla war against them.